Global Witness reports that over 100 major banks arranged about US$31 billion in sustainability-linked loans for palm oil firms tied to deforestation, corruption and rights abuses in Indonesia.
The investigation highlights Wilmar, Musim Mas and others, arguing weak standards in sustainability-linked finance let high-risk companies secure funding and ESG branding despite ongoing environmental and social controversies.
Major international banks provided billions of dollars in sustainability-linked loan deals (SLLs) to palm oil companies despite links to deforestation, corruption and human rights violations in Indonesia, according to a new investigation by Global Witness, an investigative, campaigning organisation.
The findings argue that weaknesses in current sustainable finance standards are allowing high-risk companies to continue attracting investment while presenting themselves as environmentally responsible.
According to the investigation, more than 100 banks arranged approximately US$31 billion in sustainability-linked loans for palm oil companies between 2018 and 2025. Among the banks identified are Barclays, HSBC, Credit Agricole, Rabobank, Bank of China, Standard Chartered, and others. In several cases, the financing included the refinancing of revolving credit facilities, allowing companies to maintain access to substantial funding despite ongoing environmental and governance concerns.
The report highlights Wilmar International, one of the world’s largest palm oil producers, as a key example. Despite adopting a “no deforestation” policy in 2015, Global Witness estimates that Wilmar’s concessions were linked to the loss of around 4,200 hectares of primary forest between 2016 and 2024. Local Indonesian civil society organisations have also accused the company of forcing Indigenous communities to surrender their land, allegations that have intensified concerns over its environmental and social practices.
Despite these concerns, Wilmar received about $950 million in sustainability-linked loan deal (SLL) commitments from international banks between 2018 and 2024. Its investors have also included funds marketed as sustainable or Environmental, Social and Governance (ESG)-focused. BlackRock, for example, reportedly holds around $46 million in Wilmar investments through funds labelled sustainable or ESG.
Global Witness also found that between 2022 and 2025, Wilmar and fellow palm oil producer Musim Mas collectively received US$566 million in sustainability-linked loans while both companies faced corruption allegations related to palm oil exports.
The majority of this ($400m) was provided to Wilmar, including a 2023 $200m SLL from Standard Chartered, who in March this year announced that one of their officials was jailed for bribing judges connected to the case.
Other palm oil companies, including Apical, Bunge, COFCO, Louis Dreyfus, Kuala Lumpur Kepong and the Olam Group, have also faced allegations involving deforestation or supply-chain links to environmentally sensitive areas.
Global Witness also found that Olam and Louis Dreyfus continued purchasing from suppliers apparently linked to deforestation while receiving billions of dollars in SLL commitments from banks.
The investigation highlights a wider problem in sustainable finance. Global Witness argues that the findings expose significant flaws in the sustainability-linked loan market. Unlike green bonds, these loans are tied to company-specific sustainability targets negotiated between borrowers and lenders, with no legally binding standards defining what constitutes meaningful environmental performance.
Global Witness argues that this regulatory gap allows companies with questionable records to obtain financing while presenting themselves as sustainable, undermining the credibility of the rapidly growing sustainable finance market.